GL – BCEA – Certification MCQs – Portal

1. Question

After loading your budget data into General Ledger Cloud, you can view budget balances using these features. Which feature does not belong on the list?

Application Development Framework Desktop Integration Budget Balances Report

Account Monitor

Smart View

Account Inspector

2. Question

Your customer is implementing budgetary control with encumbrance accounting. Your customer has businesses in Australia, New Zealand, and Singapore with a ledger in each country with a Corporate chart of account instance that has four segments. Which three statements are true regarding the creation of a control budget? (Choose three.)

The control budget structure has all the chart of account segments as budget segments

Control budgets are always absolute to generate encumbrance accounting

A control budget is associated to a ledger and creates three control budgets for Australia, New Zealand, and Singapore

A control budget can allow override rules only if the control level is absolute

A control budget can be associated with a different calendar than accounting calendar

3. Question

The budget managers specify the budget accounts they want to monitor and decide on percentage threshold of funds availability. Where must you define the details while analyzing budget balances in the Budget Account Monitor page?

Budget Controller

Budget Group

Account Group

Budget Account Group

Application Development Framework Desktop Integration (ADFdi)

4. Question

What are the two possible reasons for encumbrance created on the purchase order to go back to the budget or funds availability? (Choose two.)

The purchase order is canceled or finally closed or rejected without performing any receipt or invoice

When the purchase order is set to accrue at receipt and partially received, then canceled or finally closed, encumbrance goes back to the extent of the unreceived amount

The requisition reserved successfully undergoes amendment and is rejected in the reapproval

When the requisition is set to accrue at period end and partially billed and then canceled or finally closed, encumbrance goes back to the budget to the extent of the unbilled amount

5. Question

Encumbrance accounting is enabled for your ledger. An encumbrance journal dated 3/15/16 was recorded for a purchase order.
The invoice was entered on 5/5/16, but the invoice accounting date was 4/20/16. The encumbrance journal for liquidating the purchase order encumbrance is dated 5/5/16.
What is causing this?

The actual accounting date was set up under the encumbrance accounting Default Date Rule

The current transaction accounting date was set up under the encumbrance accounting Default Date Rule

The subledger accounting option is set to system date

The system date was set up under the encumbrance accounting Default DateRule

The prior related transaction accounting date was set up under the encumbrance accounting Default Date Rule

6. Question

Budgetary control for accounts 5020 and 5021 has a budget of $90,000USD each for the year 2012. The accounts also have balances on obligation of $10,000 USD for each and an expenditure of $20,000 USD for each. A Fund of $50,000 USD is available for account 5010 only. You have run the Encumbrance Year End Carry Forward process for obligation from the last period of the year 2012 to the first period of year 2013. Which statement is true?

If you have included 5020 and 5021 in the encumbrance rule, then budget balances $90,000 USD, obligation $10,000 USD, and expenditure $20,000 USD, and the funds available $50,000 USD will be carried forward

The Encumbrance Year End Carry Forward process will run for all the accounts to carry forward the general ledger balances

If you have included 5020 and 5021 in the encumbrance rule, then obligation $10,000 USD and expenditure $20,000 USD only will be carried forward.

If you have included 5020 and 5021 in the encumbrance rule, the budget balances $90,000 USD, obligation $10,000 USD and expenditure $20,000 USD only will be carriedforward.

If you have included 5020 and 5021 in the encumbrance rule, then only the obligation of $10,000 USD will be carried forward

7. Question

Your customer has enabled budgetary control for purchase orders. They have a purchase order for $1,000 USD which is fully reserved. An invoice for $600 is entered and matched to the purchase order, and the purchase order is closed for further invoicing.
What happens to the remaining $400 USD?

Invoice type will have less funds available by $400 USD

$400 USD will be expired and not available for use

$400 USD will be added back to available funds

Only obligation type will have $400 USD funds available

Manual encumbrance journal needs to be entered in General Ledger to release the budget amount of $400 USD

8. Question

You have enabled budgetary control and have a control budget set to Advisory control level. For September 2016, your budget for a given account combination is $5,000 USD. In the same month, there is an approved requisition for that account of $900 and an approved purchase order for that account of $2,500 USD. There is also a General Ledger adjustment journal entry for that account of $1,600 USD. An approved purchase order line of $400 USD is then cancelled. And an invoice is matched to the purchase order for $2,100 USD. Which two statements are true? (Choose two.)

No change

Purchase order encumbrance will be released for $2,100 USD

Funds reservation only happens for non-matched invoices, so the system will not reserve funds

As there are cancellations for $400 USD, the system will partially reserve the funds in September 2016 and fully reserve it in October 2016

The system always consumes budget of future periods if the limit for the current period is expired, so October 2016 budget will be considered for reservation

9. Question

You want to enter budget data in General Ledger Cloud. Which method is not supported?

Entering budget journals

Application Development Framework Desktop Integration (ADFdi)

Direct budget balance updates from a Financial Statement in Smart View

File-based Data Import

10. Question

You are using budgetary control. You have an open purchase order for $500 USD, and an invoice for $300 is matched to the purchase order. What will be the funds status of the purchase order and the invoice?

Both are Partially Reserved

The purchase order is Liquidated and the invoice is Partially Reserved

The purchase order is Partially Liquidated and the invoice is Partially Reserved

The purchase order is Partially Liquidated and the invoice will be Reserved

Both are reserved

The purchase order is Open and the invoice is Validated

11. Question

Your enterprise structure has one ledger and two business units. Business unit one wants to enable budgetary control for Requisitioning only on Procure-to-Pay Business Functions and business unit two wants to enable budgetary control for Payable Invoicing only in Procure-to-Pay Business Functions. Which two statements are correct? (Choose two.)

While defining control for business unit two, enable control at Requisitioning and define the exceptions to only include invoicing

While defining control for business unit one, enable control at purchasing and define the exceptions to only include requisitioning

Define budgetary control at ledger level with Budgetary Control Exceptions for each business unit

While defining control for business unit one, disable control for Purchasing, Payable Invoicing, and Receiving

Define budgetary control at ledger level and only encumbrance control at the business units

Define control for business unit two to disable control for Requisitioning, Purchasing, and

12. Question

Management wants to use the budget transfer function available on the Review Budgetary Control Balances page. Which privilege is required to perform the budget transfer?

Import Budget Amounts from Spreadsheet (XCC_IMPORT_BUDGET_FROM_SPREADSHEETS_PRIV)

Import Budget Amounts (XCC_IMPORT_BUDGET_PRIV)

Manage Control Budgets (XCC_MANAGE_CONTROL_BUDGETS_PRIV)

Budget Loading (XCC_BUDGET_LOADING_DUTY_PRIV)

13. Question

You create an invoice for USD 100 that is matched to a purchase order of USD 100. You validate the invoice to consume the budget and reduce funds available. And then later, you cancel the invoice. What happens to funds available when you cancel an invoice that requires budgetary control?

Funds available will change when the invoice is approved

The funds reserved for the purchase order is reinstated while the invoice expenditure is reserved by USD 100

The budget will increase by USD 100 and the funds available will decrease by USD100

The budget and funds available will increase by USD 100

14. Question

While troubleshooting the encumbrance entries created for the requisition for your business unit, you noticed that only a few events are triggering the encumbrance journals when you submit he create accounting program.
What are the two events?

Funds check

Requisition approved

Requisition rejected by the buyer

Submit the requisition for approval

Checkout and Save the requisition

Create change request on the requisition after submitting requisition for approval

15. Question

You’ve set up the standard accrual with encumbrance accounting for your ledger and you realized that the encumbrance journals are defaulting with current date as the accounting date. What is causing this?

The subledger accounting option Is set to system date.

The actual accounting date was set up under the encumbrance accounting Default Date Rule.

The system date was set up under the encumbrance accounting Default Date Rule.

The current transaction accounting date was set up under the encumbrance accounting Default Date Rule.

The prior related transaction accounting date was set up under the encumbrance accounting Default Date Rule.

16. Question

Your customer wants to control spending against an annual budget but report balances on a monthly year-to-date basis. Encumbrance accounting is also in use.
What setup is required to achieve this requirement?

Create an annual budget with absolute control and so encumbrance accounting will work.

Create a summary budget annually with advisory control and control budget monthly with absolute control.

Create a Summary budget annually with absolute control and monthly control budget with advisory or track control.

Create two detail control budgets: annually with absolute control and monthly with advisory or track control.

Create two detail control budgets: annually with advisory/track control and monthly with absolute control.

17. Question

Your customer is using budgetary control and encumbrance. You have an open purchase order for $500 USD, which you decide to match to an invoice for $300 USD.
What will be the fund status of the purchase order and invoice?

The purchase order is Partially Liquidated and the invoice is Partially Reserved.

The purchase order is Partially Liquidated and the invoice will be reserved.

The purchase order is liquidated and the invoice is Partially Reserved.

Both are Partially Reserved.

The purchase order is Open and the invoice is validated.

18. Question

You create a prepayment for USD 100 and validate it to consume the budget and reduce available funds under the prepayment account. You then pay the prepayment of USD 100 create an invoice for USD 300, and validate the* invoice to consume the budget and reduce available funds for the expense-accounts used in the invoice. You then apply the prepayment fully on to the invoice and revalidate it.
What happens to the available funds when you apply a prepayment that requires budgetary control?

The prepayment application was already released at the time of payment and the invoice consumes funds of 300 USD.

The prepayment application releases funds of 200 USD and the invoice consumes funds of 100 USD, with a net decrease to available funds of 200 USD.

Available funds will not change till invoice is approved.

The prepayment application releases funds of 100 USD and the invoice consumes funds of 300 USD, with a net decrease to available funds of 200 USD.

The prepayment application releases funds of 300 USD and the invoice consumes funds of 300 USD, with a net decrease to available funds of 100 USD.

The budget will be released only for the USD 300 invoice amount.

GL – BCEA – Certification MCQs

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